Assam’s Budget Blues: How Lower Growth Could Impact Fiscal Health in FY26

Assam's FY26 fiscal prospects are challenged anew, with India Ratings and Research (Ind-Ra) cautioning that the state will miss its fiscal goals as a result of growth in Gross State Domestic Product (GSDP) coming in lower than anticipated. The budget of the state had estimated 15.2% GSDP growth in FY26, but Ind-Ra now expects it to be around 14%, resulting in possible slippages in deficit and debt ratios.

 

Key Highlights:

Fiscal planning by Assam for FY27-FY31 has been viewed as optimistic, with nominal GSDP growth set at 17% annually, a number that Ind-Ra considers ambitious based on recent trends.

 

Source: BusinessWorld